Out Of Home delivery culture is spreading faster in some European countries than others. One of those to watch out for is definitely Sweden.
As it emerged during the presentation of the Report “European eCommerce 2023” made by Ecommerce Europe and Euro Commerce and presented last week at Netcomm Forum, Pickup Points and Lockers are on the rise in Sweden and more and more Swedish eShoppers are choosing alternative delivery methods to traditional Home Delivery.
Let’s analyze together the most significant eCommerce data in Sweden and, most importantly, how the Out Of Home delivery market is evolving.
Internet Users and eShopper in Sweden
Sweden, the largest Nordic country, has a total population of about 10.5 million people, 97% of whom are Internet Users.
Among Internet Users, 89% are also eShoppers, meaning they use e-commerce for their purchases. This is a steadily growing percentage (in 2018 they were 84%) and 11 points higher than the European average recorded in 2023 (eShoppers in Europe in fact represent 78% of Internet Users) and 3 points higher than the average (86%) in the Nordic countries.
91% of Swedish eShoppers buy mainly from domestic retailers; 32% also buy online from retailers in other European countries, and only 19% buy from non-European sellers.
How much is eCommerce worth in Sweden
According to data provided by Statista, eCommerce penetration in Sweden has been steadily increasing in recent years, reaching 15 percent of total sales in 2022 with total sales of SEK 136 billion, or 12 billion euros.
However, 2023 saw a slight decline (14 percent), mainly due to consumers returning to physical stores after the pandemic that gave eCommerce a boost.
Product sectors most valued by Swedish eShoppers
Consumer electronics and fashion are the best-selling B2c segments in Sweden: in 2022, the Consumer Electronics segment alone generated SEK 28 billion, while fashion generated over SEK 18 billion.
One of the most popular segments among Swedish eShoppers, however, is online pharmaceuticals. In 2022, for example, pharmaceutical retailer Apotea ranked as the web store, as well as the preferred brand, by Swedish online shoppers. The trend of buying health and personal care products online is particularly prevalent among those born in the 1970s-the so-called Generation X-and women.
Out Of Home Deliveries in Sweden
But how are online order deliveries made to Swedish eShoppers? As anticipated, in Sweden the culture of alternative deliveries to traditional Home Delivery, i.e., at Lockers and Pickup Points, is spreading fast, as also pointed out by Martina Elfgren, Head of Brussels Office at Swedish Commerce, who spoke at Netcomm Forum last week.
Online shoppers’ preferences on delivery methods in Sweden in 2023
In fact, according to a 2023 survey conducted by Statista, one-third of Swedish online shoppers chose Lockers for delivery of their packages; while less than half of eShoppers (45 percent) chose home delivery.
Instead, the method least used by Swedish eShoppers is delivery to a neighbor or to a place deemed safe by the buyer.
The reasons for the success of Out Of Home deliveries in Sweden.
But from what is the success of Lockers guaranteed among Swedish eShoppers? Analyzing the Swedish Postal Market 2021 Report, two factors emerge predominantly:
- An increase in the supply of Out Of Home delivery services.
- Increased consumer demand for flexibility and more customer-oriented delivery options.
“In recent years,” the report states, “the number of service points has increased significantly, and recipients have had more options to choose to which service point they deliver their package. In parallel, several new players have emerged. In 2020, parcel lockers have thus begun to establish themselves more and more as an alternative channel for receiving and returning parcels.”
Key players in Out Of Home deliveries in Sweden.
“Currently there are four players-DB Schenker, Bring, DHL and Postnord-that have a nationwide network. In addition, there are two actors that complement each other geographically: UPS has a presence in southern Sweden and covers areas south of Gävle. In contrast, Bussgods/Sverigefrakt focuses on northern Sweden, covering areas north of Gävle. In addition, Bussgods cooperates with DHL to reach more recipients in the south,” reads the Swedish Postal Market 2021 Report.
Also according to Statista, in 2022 DPD/Pickup was the leading operator of pickup and drop-off points (PUDOs) in Sweden with 2,628 points available. PostNord ranked second with 2,091 collection points, followed by Bring with 1,646 points, DHL and DB Schenker tied with 1,600) points, Budbee with 1,000 points, and finally UPS, with 618 points.
And that’s not all. In early 2021, a new player, iBoxen, appeared on the national scene, announcing the launch of “a new national delivery locker infrastructure in Sweden” and whose plan calls for the creation of 50,000 new Lockers for package delivery and pickup by 2026.
“Based on the ongoing expansions and announced plans,” the report concludes, “it is therefore reasonable to expect a broad development of service offerings in most parts of the country, including outside large urban areas.
However, point number 1, i.e., the increase in the supply of Out Of Home delivery services that we have described here, is closely linked to the second reason why Locker and Pickup Points are becoming increasingly prevalent in the country, namely, consumer demand for more flexible and end-customer-oriented delivery and return options.
The Benefits of Out Of Home Deliveries
Among the many advantages of using PUDO Networks and Lockers for eCommerce deliveries and returns, in fact, the flexibility and freedom offered to the end consumer is one of the most appreciated.
By choosing a Pickup Point or Locker, the customer can choose where and when to pick up or return their package, according to their needs and without having to wait on their doorstep for the courier to arrive.
Here, then, Out Of Home deliveries become synonymous with better consumer experience and, consequently, customer loyalty. A feature that Swedish eShoppers seem to have understood and increasingly appreciate.
Want to find out all the other benefits, for both eCommerce and consumers, related to using Lockers and Pickup Points? Read our in-depth discussion.
Want to integrate Lockers and Pickup Points to your eCommerce? Choose GEL Proximity! Contact us now and find out how.
